Atrium REIT net profit slips to RM2.7m for 3Q

KUALA LUMPUR: Atrium Real Estate Investment Trust (Atrium-REIT) saw its net profit decline marginally to RM2.7 million for the third quarter ended Sept 30, 2010 (3Q) from RM2.81 million a year ago despite slightly higher revenue of RM3.6 million from RM3.54 million a year ago.

Its earnings per unit dropped to 2.22 sen from 2.31 sen, it announced on Bursa Malaysia on Thursday, Oct 21.

Its total expenditure during the quarter was RM989,321, with RM341,652 spent on property expenses and RM647,669 on non-property expenses.

However, its performance improved compared with the preceding quarter, when its net profit stood at RM2.56 million on the back of RM3.55 million, due to lower trust expenses and a slight income increase despite higher borrowing costs.

“The increase in borrowing costs was due to higher interest rate charged by financial institutions as a result of the Bank Negara Malaysia increasing its benchmark Overnight Policy Rate in July 2010,” it said.

On its prospects, it DHL had confirmed that it will be renewing its tenancy for Atrium Shah Alam 1 for three years from January 1, 2011 to Dec 31, 2013.

Meanwhile, the Atrium Puchong lease renewal period is four years from Sept 19, 2010 to Sept 18, 2014.

“Barring any unforeseen circumstances, the manager expects all the properties of the Atrium REIT to maintain its 100% occupancy rates for 2010.

“The 100% occupancy rates of the properties are due to their strong tenants, competitive rental rates, strategic locations and excellent facilities.

“The Manager will continue to actively identify good assets for new acquisition to improve the yield and to continue focusing on the strategy of having the investment properties leased long-term to reputable tenants,” it said.

It had declared a third interim distribution of 2.15 sen for the quarter.